On 15 July 2011, Landsvirkjun Power and Verkis Consulting Engineers signed an agreement with Dariali Energy Ltd of Georgia on feasibility study, tender design and preparation of tender documents and detail design of the 109 MW Dariali hydroelectric project.

The Dariali hydroelectric project will be located on the Tergi river in the Kazbegi region of northern Georgia, near the Russian border. It is planned as a run-of-river project with a small dam, power intake, sand basin, 1.6 km long diversion canal feeding into a 6 km long headrace tunnel to be bored with a 5.5 m diameter hard rock Robbins TBM (tunnel boring machine).

At the end of the headrace tunnel there will be about 300m deep pressure shaft connecting to 3 Pelton units in an underground powerhouse. Water will be returned to the Tergi river through about 200 m long tailrace tunnel. Design discharge is to be 30-35 m3/s and static head is 390 m.

Work on the feasibility study started in early July, site investigations are ongoing, aiming at start of tunnel excavation late this autumn. Environmental impact assessment is ongoing and will be completed this autumn. The work is to be completed in 2014.

Landsvirkjun Power and Verkis have also concluded a sub-consultancy agreement with the local engineering company, Peri Ltd. Geological explorations will be executed by Geoengineering Ltd. and topographical survey and mapping by Geographic Ltd., both of Tbilisi.

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